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Marvin Ellison, JC Penney’s CEO
Lowe’s Companies is poaching J.C. Penney Company CEO Marvin R. Ellison.
The home improvement retailer announced Tuesday it is naming Ellison president and CEO, effective July 2. Ellison will take over for Robert A. Niblock, who previously announced his intention to retire.
Ellison is chairman and CEO of J.C. Penney, which he has attempted to steer through a turnaround. Prior to J.C. Penney, Ellison worked at Lowe’s rival Home Depot.
Shares of J.C. Penney were down 9 percent, while shares of Lowe’s were up 2 percent in premarket trading.
The highly leveraged department store has struggled to compete within the quickly evolving retail landscape, as consumers shift their shopping online and away from the mall, where many J.C. Penney stores are located. Last year, it closed more than 100 stores.
Similarly affordable rival, Kohl’s, meanwhile, has benefited from a store footprint situated away from malls. Its also taken bets like forging alliances with Amazon and Under Armour.
J.C. Penney also has been squeezed by discounters Walmart and Target as they have improved their clothing selections.
Under Ellison, the J.C. Penney has taken a number of efforts to help steward a turnaround, including a focus on beauty and appliances. In March, it eliminated 230 positions and announced the departure of executive vice president of Penney’s omnichannel business, Mike Amend,
Lowe’s board also named Richard W. Dreiling, a director of Lowe’s since 2012, chairman, effective July 2.
